India's Gold ETFs Smash ₹1 Lakh Crore Milestone Amid Record Inflows!

Gold ETFs in India Cross Landmark ₹1 Lakh Crore AUM

India's Gold Exchange-Traded Funds (ETFs) have achieved a significant milestone, with their total assets under management (AUM) crossing the ₹1 lakh crore mark as of October 2025. This achievement, detailed in a study by Zerodha Fund House, underscores a substantial shift in investor behavior towards the convenience and accessibility offered by ETFs for gold investments.

Key Numbers Fueling Growth

• The total AUM for Gold ETFs surpassed ₹1 lakh crore between October 2024 and October 2025, more than doubling.
• Net inflows into Gold ETFs reached an impressive figure of over ₹27,500 crore in the first ten months of 2025.
• This inflow amount exceeds the combined inflows recorded between the years 2020 and 2024.
• Indian Gold ETFs currently hold more than 83 tonnes of physical gold, with nearly one-third added in the current year (2025).

Investor Participation Surges

• Investor participation in Gold ETFs has seen exponential growth over the past five years.
• The number of Gold ETF folios increased dramatically from 7.83 lakh in October 2020 to over 95 lakh by October 2025.
• Lower entry barriers have played a crucial role in this surge, with individual units now priced around ₹20.
• Each unit is backed by physical gold of 99.5% purity or higher, providing tangible backing for investors.

Shift Towards ETF Route

• The substantial inflows and rising folios clearly indicate a growing preference among Indian investors for the ETF route over traditional physical gold holdings.
• This trend reflects an increased acceptance of gold as a strategic long-term asset and a foundational component within diversified investment portfolios.

Silver ETFs Show Similar Momentum

• The positive trend extends to Silver ETFs, which have also witnessed significant momentum.
• Since the introduction of the first Silver ETF in 2022, investor folios have grown to surpass 25 lakh by October 2025.
• The AUM for Silver ETFs now stands above ₹40,000 crore, mirroring the success seen in gold.

Expert Commentary

• Vishal Jain, CEO of Zerodha Fund House, highlighted the remarkable evolution of the Gold ETF product category over the last two decades.
• He contrasted the current rapid growth with the initial slow adoption phase, noting that India's first Gold ETFs took over two years to achieve ₹1,000 crore in AUM after their launch in 2007.

Impact

• This significant growth in Gold and Silver ETFs suggests a maturing Indian investment landscape.
• Investors are increasingly leveraging ETFs for convenient, transparent, and diversified exposure to precious metals.
• The trend indicates growing confidence in gold as a safe-haven asset and the efficiency of the ETF structure for wealth management.
• Impact Rating: 8/10

Difficult Terms Explained

• Gold ETF: An Exchange-Traded Fund that invests in physical gold or gold futures, allowing investors to trade gold on stock exchanges.
• AUM (Assets Under Management): The total market value of investments held by a fund or financial institution.
• Net Inflows: The total amount of money invested into a fund minus the total amount withdrawn by investors over a specific period.
• Folios: Refers to the number of investor accounts or holdings in a particular mutual fund scheme or ETF.
• Physical Gold: Gold in the form of coins, bars, or jewelry.
• Diversified Portfolios: An investment strategy that involves mixing various types of assets to reduce risk. An investor holds a variety of assets, such as stocks, bonds, and commodities.